Paus Biru is 27km east from the producing Oyong gas field. The well will test a four way dip structural closure targeting the Pliocene Mundu Formation analogous to the hydrocarbon producing zone in Oyong and Wortel gas fields.

Geophysical and geotechnical site surveys are currently underway to determine the final well location, which will be in about 48m water depth.

Drilling is expected to start in Q4 2018 to a depth of 650m using a jack up drilling rig, which is currently being sourced.

If successful, a horizontal development well would be drilled at a later date and tied into Oyong and the Grati onshore gas processing facility.

If successful, the Paus Biru prospect will add reserves to the Sampang PSC and also further extend the life of the Oyong and Wortel fields by supporting the field economics, says Cue.